Etihad Steps Closer To Profit In 2010

Etihad Airways has underlined its intent to become fully profitable within two years after announcing that its EBITDAR earnings will be in the black for the first time in 2010. “With only a month to go, we are well on track for profitable EBITDAR [earnings before interest, taxation, depreciation, amortisation and rentals] for 2010, marking an important milestone in the commercial development of the airline,” says James Hogan, who is CEO of the Abu Dhabi-based network carrier. Addressing 170 bankers at the airline’s financial road-show event in London this week, Hogan added: “Our next goal is full break-even in 2011, leading to sustainable profitability from 2012 onwards. All our indicators show that these targets are in our sights.” The seven-year-old airline’s plan to move into profitability has been delayed by the 2008 recession. But it highlights the fact that the progress comes despite significant investment in new routes, fleet and infrastructure. The airline holds orders and commitments for around 200 aircraft and is due to take delivery of 100 aircraft over the next 10 years. Its financial road-shows are part of its commercial fund-raising programme which is largely to support its aircraft financing. In 2009, Etihad’s passenger numbers rose 5% to 6.3 million while revenue passenger kilometers) grew by over 15%. Last year, revenue exceeded $2.3 billion.